San Diego-based Sempra Energy reported net income of $258 million Monday, an increase of 28 percent over a year earlier, after excluding a litigation charge.

Last year's first-quarter numbers included a $96 million charge related to the settlement of lawsuits from state officials which accused it of gaming California's power markets during the electricity crisis a decade ago.

"All of our businesses are performing well," said Chief Executive Donald Felsinger, noting that the company has refocused itself on utilities like San Diego Gas & Electric and related energy activities.

Sempra exited a commodities trading joint venture with the Royal Bank of Scotland last year. While profitable, that business came with significant risks.

In the first quarter of 2010, Sempra had earnings of $106 million on revenue of $2.5 billion. It had $2.4 billion in revenue in the first quarter this year.

Profits at flagship subsidiary SDG&E were $89 million, up 7 percent, on revenues of $838 million. A year earlier, SDG&E had profits of $83 million on revenue of $741 million.

SDG&E is asking for a 7 percent rate increase, which Felsinger expects to be approved in March of next year, retroactive to January.

SDG&E says it is buying more power from solar and wind generators, and expects to meet the requirements of a new California law calling for a third of electricity it sells by 2020 to come from renewable sources.

In a call with analysts, Felsinger said construction of the company's Sunrise Powerlink is progressing on schedule. Work has started on more than 100 towers. "We expect to complete this link in the second half of next year," he said.

At Southern California Gas Co., earnings were $68 million, up 5 percent, on revenues of $1 billion. In the first quarter of 2010, SoCalGas had earnings of $65 million on revenue of $1.1 billion.

At the request of regulators, Sempra's two utilities have spent about $1.5 million going over safety and inspection records for its pipelines.

The company said it has about 1,600 miles of transmission pipelines in populated areas, of which about 230 miles are more than 40 years old and have not been pressure tested or inspected with devices called smart pigs. The company has lowered pressure on some pipelines.

The actions follow a deadly explosion last year in a pipeline operated by Pacific Gas & Electric.

If needed, he said, the company will consider replacing some pipelines. If that's the case, it will ask for money for that from the California Public Utilities Commission.

At the regulated utilities, profits are not based on the amount of electricity and natural gas sold, but rather the value of infrastructure.

Sempra spokesman Doug Kline said revenues are not a measure of the utilities' performance because those represent pass-through costs of fuel and electricity, the price of which varies with time.